PETROLEUM EXPLORATION (PVT) LIMITED

Courtesy: Lamprell plc

SHAHZAD INTERNATIONAL GROUP OF COMPANIES

ENGAGED IN DIVERSE BUSINESS PURSUITS.

.DEDICATED TO DYNAMIC GROWTH, SUSTAINED DEVELOPMENT AND MEANINGFUL ECONOMIC BENEFITS FOR THE GROUP AND ITS PARTNERS
www.shahzadintl.com.pk

SHAHZAD GROUP OF COMPANIES

3

Flash Security Services (Pvt.) Limited

Global Mining Company (Pvt.) Limited

GROUP ACTIVITIES
4

With the Groups sound financial position, its companies are in business independently, as well as in collaboration with foreign partners, since 1980 The Shahzad Group, comprises nine (7) companies.

The Group is pursuing a policy of forging strategic alliances with reputable foreign companies The Group has been instrumental in bringing a number of multinational companies to Pakistan resulting in substantial profitable investment that led to remarkable discoveries of Oil & Gas

Activities cover a wide spectrum, including oil & gas exploration & production both onshore and offshore; power generation and transmission; mineral exploration & development including gold, copper, coal and other minerals; oil & gas field services, supply of oil & gas equipment and materials, process equipment; information technology; security; telecommunication; production of documents and trading As a local partner, Shahzad Group is providing support to foreign companies in Pakistan

RECOGNITION OF SERVICES
5

The Groups founder Chairman and Chief Executive Mr. Zaheeruddin has been bestowed a prestigious civil award, Tamgha-e-Imtiaz by the President of Pakistan, in recognition of his outstanding services to the Oil, Gas and Power Sectors.

PAKISTANS UPSTREAM OIL & GAS SECTOR

6

PAKISTAN'S ENERGY OUTLOOK

7

Pakistans Current Energy Mix

LPG 0.50%

Ever increasing Supply Demand Gap

120

Gas 47.70%

100
Need to invest NOW
Imported Oil 27.00% Hydro Electricity 11.80%
Million TOEs

80 60 40 20
Imports Import bill $ 50 Billion

Coal 6.70%

Indigenuos Oil 5.00%

Nuclear 1.30%

2010 2011 64.522 mtoe = 1,290,440 boed

2007- 2008- 2009- 2010- 2011- 2012- 2013- 2015- 2015- 2016- 2017- 2018- 2019- 2020- 202108 09 10 11 12 13 14 15 16 17 18 19 20 21 22

Source: Pakistan Energy Outlook

Local Supply

Total Oil & Gas

PAKISTAN PETROLEUM SECTOR

8

Policy, Rules & Reforms

Pakistan leads South Asia in petroleum reforms Forward looking & dynamic policies to promote private investment The petroleum sector is competitive, efficiently run, profitable and has a ready oil & gas market Pakistan has a hungry market for oil & gas Pakistans geology has proven and excellent prospects to discover new oil & gas reserves

Present Situation

Energy needs are met by local production and imports Gas contribution in the energy mix is around 50 % Annual energy growth is around 5.25% Daily oil production is 70,981 Barrels Daily gas production is 4.2 BCF Daily oil import is around one third of a million barrel Pakistan has a model energy mix from environmental point of view

PAKISTAN PETROLEUM SECTOR

9

Pakistan Energy Infrastructure Map 2012

Dynamic Policies offering competitive financial and regulatory packages

Excellent prospects to discover additional Oil & Gas reserves

Country wide gas infrastructure and ready market for new discoveries

Excellent success ratio of 1 to 3.3

Sedimentary basins are under explored (two wells / 1000 Km)

Petroleum Concession Map of Pakistan September, 2012

PAKISTAN PETROLEUM SECTOR AT A GLANCE

10

Exploratory Wells
810 (First well in 1866)

Development Wells
1112

Sedimentary Area
827,268 km

Area under Exploration

274,963 km (33% of sedimentary area)

Exploratory Drilling Density

very low compared to the world average 2 wells / 1000 km

Exploration Licenses
132

Leases
133

Discoveries: 241
Oil 59 Gas/Condensate 193

Operators
Seventeen Foreign and Eleven Local Companies

CHAIRMAN & BOARD OF DIRECTORS

11

Mr. Zaheeruddin Chairman & Chief Executive

Mr. Zafar Iqbal Director

Mr. Moeenuddin Director

Mr. Shahzad Zaheer Director

SENIOR MANAGEMENT
12

Dr. Gulfaraz Ahmed

Chief Operating Officer

Mr. Tariq Fatimi

Advisor International Affairs

Mr. Munir Ahmed

Advisor Technical

Mr. Shahid Ahmad

Advisor Concession & Corporate
Affairs and Head of Exploration

Mr. Shamim A. Bhatti

SGM Operations

Dr. Mahmood-Ul-Hassan
SGM Exploration

Edwin G Bowles
SGM (London Office)

Mr. Khalid Rahim

GM Production & Planning

SENIOR MANAGEMENT
13

Mr.Shahid-Ul-Khairi
GM Exploration

Mr. Azam Malik

GM Exploration

Mr. M. Maroof
GM Geophysics

Mr. Amir Hameed

GM Taxation

Brig. (R) M Saleem

GM Co-ordination

Mr. Khawaja Manzoor

GM Procurement

Mr. Mohammad Jamil

GM Drilling

Air Cdre (R) M.Yousaf Javed

DGM Finance

Lt Col (R) Azhar Iqbal

Manager HR and Admin

TECHNICAL TEAM
14

Mr. Muhammad Yousuf

Mr. Muzaffar Ali Khan

Mr. Naveed Akram

Consultant

Mr. Haider Ali Shah

Manager Exploration

Manager Prospect Generation Manager Production

Chaudhry Nazir Ahmed Mr. Amjad Waheed Qureshi Miss Farah Shafique Manager Geophysics Manager Geology Sr. Geophysicist

Faisal Sheikh
Sr. Geophysicist

FINANCE & COMMERCIAL TEAM

15

Muhammad Talha Waheed

Mr. Kamran Shuja

Mr. Adeeb Ali Mirza

Mr. Assad Saeed

Mr. Ubaid Rehmat

FINANCE & COMMERCIAL TEAM

16

Mr. Fahad Ali Chaudhry

Miss Mehreen Mir

Mr. Jawad Ahmed

Mr. Zain Rehman

Miss Zainab Nayyar

GROWTH
17

Established

PEL was established in 1994, by Mr. Zaheeruddin, who is the founding Chairman and Chief Executive

Growth

In less than 18 years, PEL has grown into a highly reputable and successful E&P company

Present Status

It has the largest exploration acreage among indigenous private sector companies and is operating within the country and abroad PEL has the distinction of being the first private petroleum company of Pakistan going abroad for exploration and development of oil & gas in the Kingdom of Morocco, as an Operator

GROWTH
18

Currently operates nine onshore and one offshore exploration license, five D&P/Mining leases and one non-operated block in Pakistan Operating three onshore permits in the Kingdom of Morocco, as one of the pioneer Pakistani company to enter the region, in partnership with ONHYM (the Moroccan National Petroleum Company)

Presently producing natural gas from four gas fields

Recently production has commenced from Koonj gas discovery in Sukkur Block operated by Mari Gas Company. PEL has 41.2% working interest in this Block The company along with its joint-venture partners has invested over US$ 200 Million in the past and plans to invest over US $ 300 Million on exploration and production during the next two years

JOINT VENTURE PARTNERS

19
Oil & Gas Development Company Limited Frontier Holdings Limited, Canada

Government Holdings Private Limited, Pakistan

Gulf Petroleum Exploration International, Kuwait

Pakistan Petroleum Limited, Pakistan SHERRITT International Oil & Gas Limited, Canada

Mari Gas Company Limited, Pakistan

SPUD Energy Private Limited, Australia Oil & Gas Investments, Pakistan BP Exploration (Alpha) limited

Pyramid Energy International Incorporated, BVI

Office National des Hydrocarbures et des Mines, Morocco

The range and diversity of Companys reputable Joint Venture Partners reflects their confidence in the ability and competence in PEL as an Operator on their behalf

MISSION & VISION

20

To effectively participate in petroleum exploration and production by spreading the risk and sharing the reward and enhancing knowledge base through alliances and joint ventures with key E&P companies nationally and internationally To develop a sound professional base with cutting edge technology and knowledge to emerge as a global E&P player To maximize returns to all the joint venture partners and contribute to economy of the country To protect and preserve environment in all its operations To enhance reserve base and production level through diligent exploration, acquisition and rapid development of available resources To look for joint ventures/mergers/acquisitions and strategic alliances/networking with other E&P companies

EXPLORATION & PRODUCTION PORTFOLIO PAKISTAN

21

EXPLORATION &PRODUCTION PORTFOLIO

22 Mirpur Mathelo Salam New Larkana Badin IV North Badin IV South Jhangara Mirpur Khas West Sanghar East Kaloi Hamza Sukkur(Non-Operated)

Exploration Licences (Onshore)

Exploration Licences (Offshore) Exploration Permits Morocco (Onshore)

Offshore Indus J

Haha-1 Haha-2 Haha-3

Development and Production / Mining Leases

Hasan D&PL Khanpur D&PL Badar ML

Sadiq D&PL Kandra D&PL

EXPLORATION PORTFOLIO (PAKISTAN)

23

Exploration Licences in Pakistan

Mirpur Mathelo (2769-9) Salam (2769-13) New Larkana (2768-10) Badin IV North ( 2468-6) Badin IV South (2468-5) Offshore Indus-J (2266-4) Jhangara (2567-5) Mirpur Khas West (2568-16) Sanghar East (2669-5) Kaloi (2468-8)

WIOs
PEL (Operator) 35 % FHL 35 %, GPX 25%, GHPL 5 % (Carried) PEL (Operator) 37.5%, FHL 37.5%, GPX 25% PEL 100 % PEL (Operator) 47.5% , FHL 27.5%, GPX 25% PEL (Operator) 47.5%, FHL 27.5%, GPX 25% PEL (Operator) 67%, BP 33% (under assignment to PEL ) PEL (Operator) 40%, OGIL 60% PEL 100 % PEL 100 % PEL 100 %

Area (km)
1,030.68 200.22 2,425.96 1,246.03 1,265.33 2,436.30 357.19 199.26 2,493.13 2,485.14

MIRPUR MATHELO BLOCK

24

Middle Indus basin

Area: Location: Working Interest: Play types: Hydrocarbon play: Prospectivity Zone: Surrounding oil & gas fields: Reserves exposure: 1030.68 km2 Sukkur and Ghotki Districts, Sindh Province PEL 35% (Operator), FHL 35%, GPX 25%, GHPL (carried) 5% Structural/stratigraphic in Sui Main Limestone (Eocene), Lower Goru (K) Gas/condensate III Mari(8.2 TCF), Qadirpur(5.5 TCF), Rehmat (114 BCF) and Badar(100 BCF) Over 2 TCF

Work commitment:
175 TCF

Qadirpur 5.5 TCF

Mari 8.2 TCF

50 & 150 lkm 2D seismic and 1 exploratory well

Work completed:
Seismic acquired: 253 lkm 2D Seismic purchased: 2060 lkm 2D Seismic processed/reprocessed: 1716 lkm 2D Well data purchased: 2 wells Leads/prospects mapped: 5 Exploratory wells drilled: 1 Reservoir evaluation through seismic inversion interpretation Remaining Work Commitment: 150 line km 2D seismic

Badar 100 BCF

Rehmat 114 BCF

Haseeb 200 BCF

Miano 537 BCF

Work in progress:
Stratigraphic play interpretation Structural/stratigraphic/reservoir play modeling G & G in progress

Kandra 2.86TCF

SALAM BLOCK
25

Middle Indus Basin

Area:
200.22 km2 Location: Jacobabad and Ghotki Districts, Sindh Province Working Interest: PEL 37.5 % (Operator), FHL 37.5 %, GPX 25 % Play types: Structural in Sui Main Limestone (Eocene) Hydrocarbon play: Gas Prospectivity Zone: III Surrounding oil & gas fields: Qadirpur (5.5 TCF), Kandhkot (1.6 TCF) and Badar (100 BCF) Reserves exposure: 400 BCF

Work Commitment:
Work completed:

175 TCF

Khandkot 1.6 TCF

Qadirpur 5.5 TCF

30 lkm 2D seismic and 1 exploratory well Seismic acquired: 134 lkm 2D Seismic data purchased: 520 lkm 2D Seismic data processed/reprocessed: 654 lkm 2D Well data purchased: 3 Leads/prospects mapped: 2 Reservoir evaluation through seismic inversion interpretation

Badar 100 BCF

Haseeb 200 BCF

Rehmat 114 BCF Miano 537 BCF

Mari 8.2 TCF

Work in progress:
In house G & G studies Structural/stratigraphic/reservoir play modeling Preparations to drill an exploratory well

Kandra 2.86 TCF

BADIN- IV NORTH BLOCK

26

Lower Indus Basin

1246.03 km2 Hyderabad and Thatta districts, Sindh province PEL 47.5 % (Operator), FHL 27.5 %, GPX 25 % Tilted fault blocks, structural/stratigraphic in Lower Goru, Sembar sands (Cretaceous) and Chiltan carbonates (Jurassic) Hydrocarbon play: Oil, Gas & Condensate Prospectivity Zone: III Surrounding oil & gas fields: Oil and gas fields operated by UEPL (formerly UTP/BP) surrounding the Badin IV North Block have already produced over 185 MMBO and 1.5TCF gas Reserves Exposure: 25 MMBO & 200 BCF Area: Location: Working Interest: Play Types:

SINDH
Badin IV North KARACHI Badin IV South
ML and D & P Leases (Oil & Gas Fields)

Work commitment:
150 lkm 2D seismic & 3 exploratory wells

Work completed
Seismic acquired: Seismic data purchased: Seismic data processed/reprocessed: Well data purchased: Leads/prospects mapped: Exploratory wells drilled: 300 lkm 2D seismic 4493 lkm 2D & 993 km2 3D 1460 lkm 2D 41 14 2

Work in progress:
In-house G & G studies Vintage seismic interpretation to delineate stratigraphic traps Preparations to drill an exploratory well

BADIN IV SOUTH BLOCK

27

Lower Indus Basin

12655.33 km2 Thatta and Badin Districts, Sindh Province PEL 47.5 %(Operator), FHL 27.5 %, GPX 25 % Tilted fault blocks, structural/stratigraphic in Lower Goru, Sembar sands (Cretaceous) and Chiltan carbonates (Jurassic) Hydrocarbon play: Oil, Gas & Condensate Prospectivity Zone: III Surrounding oil & gas fields: Oil and gas fields operated by UEPL (formerly UTP/BP) surrounding the Badin IV South Block have already produced over 185 MMBO and 1.5TCF gas Reserves Exposure: 30 MMBO & 700 BCF Area: Location: Working Interest: Play Types:

Work commitment:

SINDH
Badin IV North Badin IV South
ML and D & P Leases (Oil & Gas Fields)

100 lkm 2D seismic & 4 exploratory wells

Work completed
Seismic acquired: Seismic data purchased: Seismic data processed/reprocessed: Well data purchased: Leads/prospects mapped: 483 lkm 2D seismic 2673 lkm 2D & 626 km2 3D 2322 lkm 2D 29 10

KARACHI

Work in progress:
In-house G & G studies Vintage seismic interpretation to delineate stratigraphic traps Preparing to drill exploratory wells

JHANGARA BLOCK
28 Lower Indus Basin
Area: Location: Working Interest: Play types: Hydrocarbon play: Prospectivity Zone: Surrounding oil & gas fields:
Reserves Exposure:

357.19 km2 Dadu District, Sindh Province PEL 40% (Operator),OGIL 60% Structural & stratigraphic in Cretaceous sands Gas/ condensate III Zamzama (2.32 TCF + 11.68 MMBC) & Bhit (1.6 TCF) producing from Pab and Badhra (110 BCF) producing from Mughal Kot 350 BCF

Punja b

Work commitment:
200 lkm 2D seismic
Zamzama 2.32 TCF & 11.68 MMBC

Work completed:
Seismic data purchased: 253 lkm 2D Prospects mapped: 2 Exploratory wells drilled: 1 Structural modeling through Beicip Franlab Geological field work mapping and outcrop sampling Structural and reservoir evaluation study Petrophysical analysis of Pab and Mughal Kot intervals

Bhit 1.6 TCF

Badhra 110 BCF

UEPL (formally UTP/BP), OGDCL & PPL operated fields

Work in progress:
In-house G&G studies 2D Sesimic and finalize a drillable prospect Structural/stratigraphic/reservoir play modeling Preparations in hand to acquire 2D seismic before drilling an exploratory well

KALOI BLOCK
29 Lower Indus Basin
2485.14 km2 Badin and Mithi Districts, Sindh Province PEL (Operator)100% Tilted fault blocks & stratigraphic in Lower Goru and Sembar sands (K) and Chiltan carbonates (J) Hydrocarbon play: Oil, gas/condensate Prospectivity Zone: III Surrounding oil & gas fields: Oil and gas fields operated by UEPL (formerly UTP/BP) located towards west of Kaloi in the Badin Blocks that have already produced over 185 MMBO and 1.5TCF gas Reserves exposure: 15 MMBO & 350 BCF Area: Location: Working interest: Play types:

Work commitment: UEPL (formally UTP/BP) operated fields

300 lkm 2D seismic and 2 exploratory wells 4 leads/ prospects in Lower. Goru

Work completed:
2D seismic purchased: Leads/prospects mapped: 506 lkm 2D 4

Work in progress
Vintage data interpretation at Lower Goru Basal sand Structural/stratigraphic/ reservoir play modeling Preparing to acquire 2D seismic

MIRPUR KHAS WEST BLOCK

30

Lower Indus Basin

199.26 km2 Hyderabad & Dadu Districts, Sindh Province PEL (Operator) 100 % Tilted fault blocks, structural/stratigraphic in Lower Goru sands (Cretaceous) and Chiltan carbonates (Jurassic) Hydrocarbon play: Gas Prospectivity Zone: III Surrounding oil & gas fields: OGDCL, PPL and UEPL (formerly UTP/BP) oil, gas/condensate fields located north of Badin Blocks that have already produced 83 MMBO and 337 BCF gas Reserve Exposure: 200BCF Area: Location: Working Interest: Play Types:

Punj ab

Work commitment:
250 lkm 2D seismic and 3 exploratory wells

UEPL (formally UTP/BP), OGDCL & PPL operated fields

Work completed:
Seismic acquired: Seismic purchased: Seismic processed/reprocessed: Well data purchased: Leads/prospects mapped: 176 lkm 2D 305 lkm 2D 276 lkm 2D 8 3

UEPL (formally UTP/BP) operated fields

Work in progress
In-house G&G studies Sequence stratigraphy evaluation of L. Goru sands Structural/stratigraphic/reservoir play modeling Preparations to drill an exploratory well

SANGHAR EAST BLOCK

31 Lower Indus Basin
2493.13 km2 Sanghar and Khairpur Districts Sindh Province PEL (Operator) 100 % Structural/stratigraphic in Lower Goru, Sembar (Cretaceous) sands & Jurassic carbonates Hydrocarbon play: Oil/gas Prospectivity Zone: III Surrounding oil & gas fields: SGL Gas Field, Rajasthan, India (Focus Energy) and Lala Jamali, Sindh (OGDCL) Reserves exposure: 200 BCF Area: Location: Working interest: Play types:
SGL Gas Field 3100m in L. Goru, flowed 21 MMSCFD, about 950 btu/scf gas

Punjab

Work Commitment:
200 lkm 2D seismic and 4 exploratory wells

UEPL (formally UTP/BP), OGDCL & PPL operated fields

Work Completed:
Seismic purchased: Seismic reprocessed: Well Data Purchased: Leads/prospects mapped: 685 lkm 2D 36 lkm 2D 2 wells 2

Lala Jamali Gas Field (OGDCL), in L. Goru, flowed 1130 btu/scf gas

Work in Progress:
Vintage seismic interpretation Structural/stratigraphic/reservoir play modeling Preparing to acquire 200 lkm 2D seismic

NEW LARKANA BLOCK

32
Lower Indus Basin
2426 km2 Larkana & Shikarpur Districts, Sindh Province PEL (Operator)100 % Structural in Sui Main Limestone (Eocene), Dunghan carbonates (Paleocene) and stratigraphic in Pab Sandstone (Cretaceous) Hydrocarbon play: Gas/condensate Prospectivity Zone: III Surrounding oil & gas fields: Mehar (434 BCF), Mazarani (183 BCF), Haseeb (200 BCF), Kandra (2.86 TCF), Block 22 (175 BCF) Reserves exposure: 200 BCF Area: Location: Working interest: Play types:
Hasan, Khanpur, Sadiq & Hamza 175 BCF

Mazarani 183 BCF

Haseeb 200 BCF

Work commitment: 100 lkm 2D seismic and 3 exploratory wells Work completed: Seismic data purchased: Well data purchased: Leads/prospects mapped:

Kandra 2.86 TCF

Mehar 434 BCF

556 lkm 2D 1 2

Work in progress: In-house G & G studies Vintage seismic interpretation Structural/stratigraphic/reservoir play modeling Preparing to acquire 100 lkm 2D seismic before drilling a well

SUKKUR BLOCK (NON-OPERATED)

33 Middle Indus Basin
Area:
Location: Working Interest: Play types: Hydrocarbon play: Prospectivity Zone: Surrounding oil & gas fields: Reserves exposure:
175 BCF Haseeb 200 BCF

2435.4 km2 Sukkur and Ghotki Districts, Sindh Province PEL 41.2%, MGCL (Operator) 58.8% Structural in Sui Upper & Sui Main Limestones (Eocene) and stratigraphic in Lower Goru sands (Cretaceous) Gas/condensate III Block 22 (175 BCF), Haseeb (200 BCF), Kandra (2.86 TCF), Rehmat (114 BCF) and Badar 100 BCF 200 300 BCF

Work commitment: Work completed

Khandkot 1.6 TCF

Qadirpur 5.5 TCF

Seismic Acquisition & Processing of 100 lkms and 3 exploratory wells Seismic acquired: 460 lkm Seismic data purchased: 909 lkm 2D Seismic data processed/reprocessed: 1200 lkm Well data purchased: 5 Leads/prospects mapped: 5 Wells drilled: 3 Discovered Koonj Gas Field, under extended well testing (EWT), present production 2.5 MMSCFD Regional geological study of Central Gas Basin

Badar 100 BCF Rehmat 114 BCF Mari 8.2 TCF Miano 537 BCF Kandra 2.86TCF

Work in progress:
In-house G & G studies Vintage seismic interpretation Structural/stratigraphic/reservoir play modeling

OFFSHORE INDUS J BLOCK

34

Offshore Indus Basin

Area: Location: Working Interest: Play types: Hydrocarbon play: Prospectivity Zone: Wells in the area: Reserves exposure: 2436.30 km2 200 km south of Karachi PEL (Operator) 77 %, BP 33% (under assignment to PEL) Channel/levee sands/carbonate buildups (Paleogene Neogene) Gas/condensate O 13 wells (PakCan-1 flowed 3.7 MMSCFD) 25 - 30 TCF

Work commitment:
186 Work Units (WU) One WU = 10 lkm 2D or 1 km 3D seismic
Channel-sheet sands leads&
prospects

Work completed:
Seismic acquired: Seismic processed to PSDM level: Leads/prospects mapped: 936.5 lkm 2D& 550 km 3D (643.6 WU) 550 km 3D cube 2 on 3D cube and 3 on 2D data

Work in progress:
In-house G & G studies Structural/stratigraphic/reservoir and source play modeling

OIL AND GAS POTENTIAL EXPLORATORY BLOCKS (PAKISTAN)

35

Gas Exposure
Mirpur Khas West 0.20 TCF Sanghar East 0.20 TCF Kaloi 0.35 TCF Jhangara 0.35 TCF Salam 0.40 TCF Badin IV South 0.70 TCF Badin IV North 0.20 TCF New Larkana 0.20 TCF

Oil Exposure
Kaloi 15 MMBBL

Badin IV South 30 MMBBL

Badin IV North 25 MMBBL

Reserve Exposure for Offshore J Block is estimated at 25 30 TCF and Mirpur Mathelo over 2 TCF

36

HYDROCARBON ASSETS (OPERATED FIELDS)

Recoverable reserves from Block-22, Badar and Kandra Fields are estimated to be over 3 TCF of Gas

GAS PRODUCTION SHARE 2010 2011

37
TULLOW 0.01% Dewan 0.71% OGDCL 21.38%

Petronas 0.33%

Eni Pakistan 11.86%

OMV 11.00% OPII 0.33%

MGCL 12.65%

MOL 7.57%

BP 4.39% BHP 9.73% PPL 18.86%

PEL 0.67%

POL 0.53%

38

GAS PRODUCTION SHARE 2010 2011 (PRIVATE SECTOR)

Dewan 37.26% POL 27.69%

PEL 35.05%

HASSAN, SADIQ & KHANPUR D & P LEASES

39

Hasan D & P Lease

Khanpur D & P Lease

Sadiq D & P Lease

Gas Production 8.307 MMSCFD (September, 2012)

HASSAN, SADIQ & KHANPUR D & P LEASES

40
Khandkot 1.6 TCF Qadirpur 5.5 TCF

Haseeb 200 BCF

Block 22 Fields on production since December 2000 Reservoir: Sui Main Limestone (SML) Eocene Cumulative production: 58.35 BCF (as on 31-12-2011) Number of producing wells: 06 Hasan-4 well to be drilled in 2012
Kandra 2.86 TCF Miano 537 BCF

Badar 100 BCF

Mari 8.2 TCF

Rehmat 114 BCF

HASSAN, SADIQ & KHANPUR D & P LEASES

41

Block-22 was awarded in 1994 Four discoveries namely Hasan, Sadiq, Khanpur & Hamza have
been made Three D&P Leases have been granted whereas the Hamza DOC has been submitted & gas is planned to be supplied for power generation Production Facilities consist of Dehydration Unit, Amine sweetening unit, Compressors, API separator, Evaporator and Condensate handling unit. Upside Plan to drill an additional well in Hasan Lease to enhance production Plan to develop Hamza Discovery

BADAR MINING LEASE

42

Badar Mining Lease was granted in 2002, GSA was signed in August, 2004 and the production from the field commenced from SML reservoir in April, 2006.
Current production rate is 13.9 MMSCFD. Cumulative production from the date of first gas delivery is 31.18 BCF (as on 31-12-2011). The field is surrounded by major gas fields and has an upside potential of stratigraphic and structural plays Future plan is to drill Badar-2 in development well in 2012 to enhance production.

Hassan, Khanpur, Sadiq & Hamza 175 BCF Haseeb 200 BCF

Khandkot 1.6 TCF Qadirpur 5.5 TCF

Kandra 2.86 TCF

Rehmat 114 BCF

Mari 8.2 TCF

Miano 537 BCF

BADAR 13.9 MMSCFD

KANDRA D&PL
43

Lease Granted January 2006 Location/Area Khairpur and Sukkur Districts/286 Km Objectives Primary SML (Eocene) Secondary Lower Goru Sands / Chiltan Limestone Recoverable Reserves 2.86 TCF (SML) Wells Drilled 3 shallow, 1 deep Power Project GOP approved 120 MW power plant using Kandra Gas as fuel Future Plan Well Locations finalized. Preparation in hand to develop the field

Haseeb 200 BCF

Khandkot 1.6 TCF Qadirpur 5.5 TCF

Hassan, Khanpur, Sadiq & Hamza 175 BCF Rehmat 114 BCF

Badar 100 BCF

Mari 8.2 TCF

Miano 537 BCF

Kandra 2.86TCF

KANDRA FIELD DEVELOPMENT & POWER PROJECT

44

FIELD DEVELOPMENT
The low heating value Kandra gas (150 BTU/SCF) will be used as fuel for power generation after processing and blending with pipeline quality gas The field development envisages drilling and completing 12-14 additional wells, surface gathering lines and central processing facility for producing 120 MMSCFD of raw gas This gas after processing will yield 40 MMSCFD gas of 330 BTU/SCF heating value

POWER PROJECT
The processed Kandra gas will be commingled with 10 MMSCFD pipeline quality gas of 900-950 BTU/SCF heating value to yield 50 MMSCFD of 440450 BTU/SCF heating value This gas will be used as fuel for Combined Cycle Power Project of 120 megawatts electricity to be set up by the Kandra Power Company.

THE FIELD DEVELOPMENT AND POWER PROJECT IS ESTIMATED TO COST ABOUT US $ 95 MILLION AND US $ 165 MILLION RESPECTIVELY

EXPLORING AFRICA KINGDOM OF MOROCCO

45

HAHA PERMITS MOROCCO

46

Essaouira Basin
Area: Location: Working interest: Play types: Hydrocarbon play: 4919 km2 (about 25% of Essaouira Basin) 550 km southwest of Capital Rabat PEL75% (operator), ONHYM (carried) 25% Structural/stratigraphic in Triassic sands, Jurassic sands/carbonates and Paleozoic clastics Gas, oil and condensate Surrounding oil & gas fields: Seven oil and gas fields about 60 km to the north with 500 BCF and 50 MMB oil/ condensate in Triassic & Jurassic sands and carbonates. Sidi Rhalem oil field produced 9 MMBBL of oil from Jurassic Carbonates 8 TCF and 400MMBBL

Resource exposure:

Work commitment:
7 oil & gas/ condensate fields Rec. Reserves 500 BCF and 50 MMBO

70 km 3D and 1 well

Work completed:
Seismic acquired: Seismic data reprocessed: Leads/prospects mapped: Salt induced surface structures delineated , 40-80 km2 each: Petrographic study of Triassic reservoirs Geochemical modeling Gravity magnetic data evaluation 139 km 3D 132 lkm 2D 04

10

Work in progress:
In-house G & G studies Evaluation of salt cored structures Preparing to drill an exploratory well

Atlantic Ocean

Haha Permits

HAHA PERMITS MOROCCO

47

REGULATORY REGIME Politically stable & progressive country Investment friendly fiscal regime Government carried interest is limited to 25% in exploration phase Royalty 10% on oil and 5% on gas No surface rental levied No petroleum duty No currency control Tax free import of equipment, material and consumables Corporate Tax holiday during ten years regular production

HAHA PERMITS MOROCCO

48

Large salt induced anticlines mapped indicating several TCF potential gas resources

AREA: 56 km2

GEOLOGICAL MAP

IH # 1

DIGITAL TERRAIN MODEL

IH # 1

HAHA PERMITS MOROCCO

49

# 1 2 3 4 5 6 7 8

SURFACE STRUCTURES
Amsittene diapir Ihchech Ihchech south Baulanouar Agouti Imakherim Adar yssi Assaka

EXPOSED STRATA
Jurassic Jurassic Jurassic Cretaceous Cretaceous Cretaceous Cretaceous Cretaceous

RESERVOIR TARGETS Triassic/Paleozoic Triassic/Paleozoic Triassic/Paleozoic Jurassic/Triassic/Paleozoic Jurassic/Triassic/Paleozoic Jurassic/Triassic/Paleozoic Jurassic/Triassic/Paleozoic Jurassic/Triassic/Paleozoic

AREA (km2)
80 56 70 60 30 15 55 15

Aziar

Cretaceous
Triassic

Jurassic/Triassic/Paleozoic
Paleozoic

40
48

10 Imouzzer

50

CORPORATE SOCIAL RESPONSIBILITY

CSR is a key priority for the Company

CORPORATE SOCIAL RESPONSIBILITY

51

Vocational Training Education Health

Corporate Social Responsibility

Drinking Water

Disaster Management

Road Infrastructure

CORPORATE SOCIAL RESPONSIBILITY

(Message from the Chairman)
52

It is my privilege to say that PEL as a responsible corporate entity is committed to enhancing the wellbeing of the underprivileged communities in and around its concessions and lease areas, by providing clean drinking water, education, health facilities, local employment and infrastructure development. Every year millions of dollars are being spent on community welfare programs. Today I can very proudly say that with our sustained community welfare programs we have helped in ameliorating their difficulties and improving their wellbeing. PEL is committed to continuing these efforts into the future

Zaheeruddin
Chairman and Chief Executive

CORPORATE SOCIAL RESPONSIBILITY

53

POLICY, VISION AND ACHIEVEMENTS

As per the CSR policy outlined by the Chairman, PEL as a responsible corporate entity is fully aware and committed to its social responsibility towards the local communities in its area of operation PEL has established a track record of implementing social welfare schemes in its area of operations PEL made a significant contribution (US$ 29,750) in construction of eight classrooms at HMB Trusts Institute of Science & Technology, Shikarpur
PEL undertook installation of Electric Water Coolers at various schools, colleges, libraries and parks (US$ 33,688) Made a major contribution (US$ 456,260) in the establishment of regional Petroleum Technical Training Institute at Khairpur, Sindh

www.shahzadintl.com.pk

CORPORATE SOCIAL RESPONSIBILITY

(RECENT SOCIAL WORK ACTIVITIES)
54

Provision of funds for the establishment of Petroleum Training Institute in Khairpur, Sindh. www.shahzadintl.com.pk

CORPORATE SOCIAL RESPONSIBILITY

(RECENT SOCIAL WORK ACTIVITIES)
55

Provisionof ofuniforms funds forfor the establishment Provision orphan children of at Petroleum Bait ul MalTraining Pakistan Institute in Khairpur, Sindh. www.shahzadintl.com.pk

CORPORATE SOCIAL RESPONSIBILITY

(RECENT SOCIAL WORK ACTIVITIES)
56

Provision Provision of ofuniforms funds forfor the orphan establishment children of at Petroleum Bait ul Mal Training Pakistan Medical facilities consisting of mobile dispensaries/ambulances Institute in Khairpur, Sindh. www.shahzadintl.com.pk for emergencies

CORPORATE SOCIAL RESPONSIBILITY

(RECENT SOCIAL WORK ACTIVITIES)
57

Medical facilities consisting of for mobile dispensaries/ambulances Provision Provision of ofuniforms funds forfor the orphan establishment children of at Petroleum Bait ul Mal Training Pakistan Installation of water coolers the supply of clean drinking for emergencies Institute in water Khairpur, Sindh. www.shahzadintl.com.pk

CORPORATE SOCIAL RESPONSIBILITY

(RECENT SOCIAL WORK ACTIVITIES)
58

Medical facilities consisting of mobile dispensaries/ambulances Provision Provision Installation of of uniforms funds of water for the coolers orphan establishment for children the of at Petroleum Bait of NGO clean ul Mal drinking Training Pakistan Donated a for vehicle to a wellsupply reputed for emergencies Institute in water Khairpur, Sindh. www.shahzadintl.com.pk

CORPORATE SOCIAL RESPONSIBILITY

FLOOD RELIEF OPERATIONS
59 Unprecedented and devastating floods hit the entire country in the monsoon months of July and August, 2010. People living in the vicinity of Block-22 & Badar fields were seriously affected by these floods. PEL in line with its CSR Policy provided relief to the flood affectees by taking the following actions: supplying cooked meals ration and other necessities like kitchen utensils boats for rescue works (one wooden boat and one fiber glass motor boat with 25HP engine) Organized distribution schemes of emergency food packs and relief goods (cooked meals and bags (20 kg each) containing flour, rice, sugar, grain seed, cooking oil, milk and tea) PEL had organized field trips of qualified medical teams through mobile dispensaries for helping the affected people against exposure to water borne and other diseases.

CORPORATE SOCIAL RESPONSIBILITY

TRAINING POLICY
60

PEL is committed to imparting skills related to oil & gas industry requirements. It has proudly invested over One Million US Dollars during the last four years (i.e. 2008 2011) on training and development of government officials and its employees. The main objective of training and development is to help develop key competencies which enable individuals to perform current or future jobs successfully. All training and development programs are geared towards: Strengthening the job skills/knowledge of government officials and its employees Improving operational efficiency and productivity Key Training Activities of our employees during 2011 were as follows: Oil & Gas Summit, Asia Malaysia Seminar on Testing Through New Technology arranged by Schlumberger Islamabad, Pakistan Procurement & Inventory Management arranged by Skill Development Council Wireline Log Interpretation arranged by OGTI Islamabad, Pakistan Business Writing Skills arranged by Skill Development Council

STATUTORY PAYMENTS TO THE GOVERNMENT

61

PEL has contributed an amount of over US$ 13 million from July, 2003 till January 31, 2012 on account of statutory payments to the Government of Pakistan covering royalty, area rental, marine research, production bonus, signature bonus, training, social welfare, general sales tax, excise duty, with-holding tax and custom duty.

HEALTH, SAFETY, SECURITY & ENVIRONMENT POLICY

62

Provide adequate training, information and instructions on health, safety and hazards

Ensure protection of the environment

Regard all accidents as preventable.

Provide adequate and proper facilities, equipment and safety apparel

Commit towards a safe environmental management

Follow and maintain safe systems of work

HSSE Policy

To candidly audit and report all HSSE performances.

Proud to be committed to environment friendly operations As a result of strict adherence to HSSE policy, the time lost on account of accident/injury was zero hours in Block-22 and Badar operations during last ten years

FUTURE OUTLOOK
63

To exploit knowledge and evolving technology and pursue international opportunities for exploration and acquisition of production assets to become a leading E&P company

To attract serious E&P companies into Joint Ventures Partnerships through farming into its exploration and production assets in Pakistan and overseas, especially Morocco

To aim at an aggressive corporate growth through prudent goals oriented strategies and risk management spreading the risks and sharing the rewards

EXPECTED EXPONENTIAL RISE

64

Expansion of PELs Operations internationally

Achieving sustainability, and making PEL a successful global energy company

Growth within Pakistan

65

www.shahzadintl.com.pk